In April 2004 the Canadian Border Services Agency (CBSA) initiated an investigation into the alleged injurious dumping and subsidizing of certain carbon steel fasteners originating in or exported from the People’s Republic of China and Chinese Taipei (Taiwan).

As a result, the Canadian International Trade Tribunal (Tribunal) started its preliminary injury inquiry. At the time of the initiation of the investigation, Requests for Information (RFIs) respecting dumping were sent a number of exporters in China, Chinese Taipei, and the U.S.A., On June 28, 2004, the Tribunal made a preliminary determination that the evidence disclosed a reasonable indication that the dumping and subsidizing of carbon steel fasteners have caused injury to the Canadian fastener industry.

In December of 2004 the CBSA made a final determination that certain products originating in or exported from these regions had been dumped, and that the margins of dumping were not insignificant.

The subject goods were defined as; "Certain carbon steel fasteners originating in/or exported from the People's Republic of China and Chinese Taipei, excluding those specifically designed for application in the automotive or aerospace industry."

As a consequence, you may be suffering a countervailing duty on your purchases of up to 170% upon clearance into Canada. This may apply to any product named in the ‘Subject Goods’ matrix which you import from the USA or elsewhere if the Country of Origin is one of these regions.

If properly declared, this charge will be found on your customs invoice along with normal clearance costs. In the event of a Customs audit, it is incumbent upon the Importer to demonstrate that they have exercised due diligence in assessing COO and declaring correctly. Failure to do so may result in significant fines as well as interest charges on unpaid tariffs.

For more information concerning this investigation, please see https://www.cbsa-asfc.gc.ca/sima-lmsi/mif-mev/fas-eng.html